Cebu’s purchasing power will attract investors: Yu

THE Cebu Investment and Promotions Center (CIPC) is encouraging non-Cebuano investors to choose Cebu and take advantage of Cebuanos high spending power.

In his talk during the the recent general membership meeting of Financial Executives Institute of the Philippines (Finex)-Cebu Inc., CIPC managing director Joel Mari Yu said his office’s goal is to help expand Cebu’s economy by increasing the metropolis’ purchasing power to generate more employment.

“The principal strategy is to increase non Cebuano-participation in the city’s economic development by investing and spending in Cebu,” said Yu.

He noted that the reason big retail operators and luxury brands are expanding operations in Cebu and real estate players are building condominiums one after the other is because “there is more purchasing power here.”

“There is more fund here,” he said.

Yu said foreign direct investment (FDI) is now the “name of the game,” but they are not limiting Cebu in attracting foreign investments alone but including its neighboring islands.

He said proof of Cebu having more funds than any other area outside Manila is the P6.58 billion new money being pumped into Cebu’s economy at least every month which come from the cash contributions from labor-intensive industries, such as the manufacturing and the information technology (IT)/ business process outsourcing (BPO) sectors in forms of salary/wages and maintenance and operating expenses.

Yu said job opportunities generated from FDI’s have led to the increase in number of support industries such as cafes and restaurants, boarding houses, apartments and condominiums, insurance, banks, bars, massage parlors, education, transport, shopping centers and malls, which in turn generates some P1.6 billion monthly wages paid indirectly.

In terms of sustaining continued entry of local and foreign investments, Yu stressed Cebu has to address issues on quality, quantity and cost.

For instance, manufacturing companies are complaining about the frequency regulation in power. He said they are calling on power operators to not only control the voltage but also the frequency.

In terms of growing the IT-BPO sector, Yu said Cebu has to make sure that the demonstrated capability is complemented by economies of scale and workable programs that assures room for growth.

“We need to make sure that the people we bring in to Cebu are value-added,” he said.

While Cebu has proven its capability in getting non-Cebuano’s to invest in capital expenses like factories, office space, commercial establishments, and resorts, Yu said Cebu should now develop program focused on getting non-Cebuanos to invest in second homes and pay living expenses here.

Yu said Cebu’s main attraction should be its livability. He said the province offers a very wide range of living facilities from condominiums, full-service apartments, townhouses and stand-alone houses.